IDEAS home Printed from https://ideas.repec.org/a/col/000107/008319.html
   My bibliography  Save this article

The Macroeconomics Of Remittances In The Philippines

Author

Listed:
  • VERONICA BAYANGOS

    ()

  • KAREL JANSEN

    ()

Abstract

This article first explores the cyclical dynamics ofremittances, and then, analyzes the macroeconomicimpact of remittances and the monetary policy implications.In this endeavor, we use the case of thePhilippines, one of the countries where remittancesare substantial. A dynamic structural quarterlymacroeconometric model of the Philippines is usedto trace the various channels through which remittancesaffect the main macroeconomic variables.In the assessment of the impact of the 2008 globalfinancial crisis, we should also consider the remittancesas a transmission channel. We haveestablished that remittances are driven by the economiccycle of the main host countries and thatthe ongoing recession will thus lead to a decline intransfers. Through our model, we have been ableto trace the impact of changes in remittances onimportant economic variables such as aggregatedemand, money supply and interest rates, the exchangerate, and labor supply and wages.

Suggested Citation

  • Veronica Bayangos & Karel Jansen, 2010. "The Macroeconomics Of Remittances In The Philippines," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, vol. 28(61), pages 18-58, August.
  • Handle: RePEc:col:000107:008319
    as

    Download full text from publisher

    File URL: http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/espe_061-1.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Laurence M. Ball, 1999. "Policy Rules for Open Economies," NBER Chapters,in: Monetary Policy Rules, pages 127-156 National Bureau of Economic Research, Inc.
    2. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    3. Sandra M. Leitner, 2005. "The Business Cycle in the Philippines," Macroeconomics Working Papers 22644, East Asian Bureau of Economic Research.
    4. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
    5. Dillon Alleyne * & Claremont D. Kirton & Mark Figueroa, 2008. "Macroeconomic determinants of migrant remittances to Caribbean countries: panel unit roots and cointegration," Journal of Developing Areas, Tennessee State University, College of Business, vol. 41(2), pages 137-153, January-M.
    6. Rand, John & Tarp, Finn, 2002. "Business Cycles in Developing Countries: Are They Different?," World Development, Elsevier, vol. 30(12), pages 2071-2088, December.
    7. Blanchard, Olivier Jean & Kiyotaki, Nobuhiro, 1987. "Monopolistic Competition and the Effects of Aggregate Demand," American Economic Review, American Economic Association, vol. 77(4), pages 647-666, September.
    8. Vargas-Silva, Carlos, 2008. "Are remittances manna from heaven? A look at the business cycle properties of remittances," The North American Journal of Economics and Finance, Elsevier, vol. 19(3), pages 290-303, December.
    9. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, vol. 32(8), pages 1407-1417, August.
    10. Socorro Gochoco-Bautista, Maria, 2000. "Periods of Currency Pressure: Stylized Facts and Leading Indicators," Journal of Macroeconomics, Elsevier, pages 125-158.
    11. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," World Bank Economic Review, World Bank Group, vol. 21(2), pages 219-248, May.
    12. Yap, Josef T., 1996. "Inflation and Economic Growth in the Philippines," Discussion Papers DP 1996-11, Philippine Institute for Development Studies.
    13. Buch, Claudia M. & Kuckulenz, Anja & Le Manchec, Marie-Helene, 2002. "Worker Remittances and Capital Flows," Kiel Working Papers 1130, Kiel Institute for the World Economy (IfW).
    14. Carlos C. Bautista & Roberto S. Mariano & Bayani Victor Bawagan, 2009. "The NEDA quarterly macroeconomic model: theoretical structure and some empirical results," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 46(2), pages 240-260, December.
    15. Calvo, Guillermo A., 1983. "Staggered prices in a utility-maximizing framework," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 383-398, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    remittances; monetary policy; exchangerate; capital flows; dynamic structural model.;

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000107:008319. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Espe). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.